City Council’s Budget and Finance Committee on Monday unanimously agreed to allocate $20 million in capital funding for the $106 million interchange project at Martin Luther King Drive and Interstate 71.
The funding will be backed through property taxes, which, according to the city administration, will prevent the city from lowering property taxes in the future as originally planned.
Councilman P.G. Sittenfeld argued the focus should be on the project’s economic potential, not its possible impact on property taxes.
“If the city stopped spending money and stopped investing in things, indeed people’s taxes would go down, but I don’t think it’s a very fair frame to think about making this very important investment,” he said.
But Councilman Chris Seelbach said the public should know the full effects of the project.
“Believe me, I support this, and I support this through the property tax, but I just don’t want us to be able to pass this without saying what it is,” he said.
Council members said they support the interchange project because of the positive economic impact it will have on the uptown area, which includes the University of Cincinnati and surrounding hospitals.
According to a May 2012 study from the University of Cincinnati’s Economics Center, the project will produce 5,900 to 7,300 permanent jobs. The same study found the economic impact of the project will reach $133 million during construction and $750 million once the interchange opens, which would lead to higher tax revenues.
The city is carrying roughly one-fifth of the cost for the interchange project. The rest will be financed through the state and Ohio-Kentucky-Indiana Regional Council of Governments.